Creating a More Sustainable, Affordable and Inclusive Housing Market

The U.S. faces a housing shortage of around 3.2 million homes, constituting 2.5 percent of the existing inventory as of 2022, according to an Axios article summarizing America’s housing shortage spanning from 1982 to 2022. This visual representation showcases existing housing units relative to population demand in the U.S.

This shortage significantly contributes to high housing prices, amplified by an insufficient number of homes to accommodate the growing number of households. Estimates indicate a shortage in the millions.

Hines, a global real estate investment, development and management firm, conducted an analysis of information gathered from the U.S. Census Bureau and Moody’s Analytics to compile the data that Axios used in the chart. The analysis includes all housing units as defined by the census, which excludes dorms, skilled nursing facilities or other group quarters arrangements.

Despite an influx of younger people entering the homebuying market, the challenge remains in keeping up with the demand due to an insufficient housing supply.

International Code Council Support in Solving the Housing Crisis

Recognizing the importance of helping to solve the housing crisis, the International Code Council is focused on removing barriers and reducing the cost of construction for new homes. By considering potential cost impacts in the codes and standards development process, the Code Council aims to find balance between safety regulations and affordability to ensure that construction practices are both resilient and economically viable.

High construction costs can impede the development of affordable housing, amplifying the shortage of available homes. By evaluating the cost impacts of the International Codes® (I-Codes), policymakers can implement regulations that prioritize safety without making it too costly for builders and homeowners.

“At the Code Council, we take pride in being the only Standard Development Organization that actively incorporates cost impact considerations into our codes and standards development process,” said Ryan Colker, Vice President of Innovation at the Code Council. “This unique approach encourages the construction of more affordable housing options, ultimately contributing to a more sustainable and inclusive housing market.”

Advantages of Off-Site Construction in the Housing Market

Off-site construction has advantages that could be key to solving the housing crisis, but only if industry challenges are overcome.

By streamlining the construction process, off-site construction significantly accelerates construction timelines by 20 to 50 percent and can reduce costs by more than 20 percent. This efficiency not only addresses the urgent need for housing but also ensures the development of higher-quality homes, leading to more durable and energy-efficient homes.

Off-site construction’s ability to meet the increasing demand for housing in a timely, cost-effective and sustainable manner makes it a valuable strategy in alleviating the housing crisis.

SEE RELATED: Off-Site Construction Solutions Highlighted at Senate Hearing on Housing Supply and Innovation

To help further advances in the off-site construction industry, the Code Council, in partnership with the Modular Building Institute, has created several off-site construction standards to address regulatory inconsistencies. These standards include:

• ICC/MBI 1200-2021 Standard for Off-site Construction: Planning, Design, Fabrication and Assembly
• ICC/MBI 1205-2021 Standard for Off-site Construction: Inspection and Regulatory Compliance
• ICC/MBI 1210-2023 Standard for Mechanical, Electrical, Plumbing Systems, Energy Efficiency and Water Conservation in Off-site Construction

The Code Council also has several guidelines and additional resources to help building safety professionals and manufacturers realize the benefits of off-site construction.

You can learn more and access those resources here.